E cigs, what you need to know

E-Cigs: What You Need to Know

The Electronic Cigarette Industry

• Smoking contributes to 80% of lung-cancer deaths in women; 90% in men, according to the American Lung Association

• E-cigs have 450 times lower levels of toxicants in their vapors than can be found in cigarette smoke

• At just $1.2 billion, the e-cig market is still small• Only 1% of the $89 billion tobacco industry

The Electronic Cigarette Industry

• E-cigarettes, which do not contain tobacco, resemble traditional cigarettes but use a battery to heat a liquid nicotine solution, which creates a vapor – not smoke -- that users inhale.

• There is no second-hand smoke with e-cigs; however, the FDA has warned the effects are unknown.

• Gives users their nicotine fix without the toxins and carcinogens generated by burning tobacco.

The Electronic Cigarette Industry

• Between manufacturer price hikes on cigarettes, increased taxes by local, state, and federal governments, and bans on public smoking, cigarette sales will continue to fall

• There is no federal excise tax on e-cigarettes• Sales are estimated to hit between $3 billion and $10

billion over next 5 years • Could surpass regular cigarette sales within the next

decade

The Top 5 E-Cig Brands

E-Cig Brand Market Share by Units

Market Share by Dollar

blu eCig 36.1% 44.8%

Njoy 17.7% 20.6%

Logic 20.8% 18.5%

21st Century 7.3% 4.2%

Nicotek 4.6% 3.0%

Data from Nielsen

E-Cig Industry Wildcards

• Lorillard was first Big Tobacco company to embrace e-cigs with purchase of blue eCig for $135 million

• Just acquired SkyCig for $49 million• Reynolds American recently introduced its Vuse brand

in Colorado and captured 80% of the market• Altria to introduce NuMark MarkTen brand• Altria will partner with Philip Morris International to

market e-cigs and smokeless tobacco products globally

E-Cig Industry Risks

• Benefits are still largely unknown by regulators and politicians

• Because they look like cigarettes there is fear they will lead to complacency over smoking

• Fear that flavors and aromas will attract kids• "Vaping" bans are being enacted in a number of cities• FDA is angling to regulate this largely unregulated

market, similar to tobacco

Nicotek

• Disposable or rechargeable• Standard kit comes with

USB charger, 2 cartridges, 1 rechargeable battery, carrying case

• Comes in 3 different flavors: 1.2% nicotine by volume, 1.8%, and 1.8% menthol

Metro E-Cig Brand

21st Century

• Disposable or rechargeable• Disposable device is

comparable to 1 pack of cigarettes

• Rechargeable cartridge is comparable to approximately 2 packs of cigarettes

• Comes in different flavors, from 1.6% nicotine per ml to 2.0% per ml, and menthol

21st Century Smoke E-Cig Brand

Logic

• Rechargeable• Cartridge is comparable to

400 puffs or approximately 2 packs of cigarettes

• Comes in different flavors, from 1.4% nicotine per volume to 2.4% per ml, and menthol

• Also available in 0% nicotine by volume and a 0.8% hookah strength

Logic E-Cig Brand

NJOY

• Disposable or rechargeable• No lighting or charging

required to smoke• Comes in different flavors,

from 0.6% nicotine per volume to 1.8% per ml, and menthol

NJOY E-Cig Brand

Lorillard

• Rechargeable or disposable

• Cartridge is comparable to 250; premium cartridges equate to 350 puffs

• Comes in different flavors ranging from 0 mg of nicotine to 13-16 mg

blu eCig Brand

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